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Dec 31, 2024
HSBC Q4 2024 Earnings Report
HSBC reported stable revenue with improved pre-tax profit despite notable one-time charges.
Key Takeaways
HSBC's Q4 2024 results showed revenue of $11.6 billion, a decrease of 8% year-over-year, with EPS at $0.01. Excluding notable items, EPS was $0.29. Net income was $197 million, operating income was $2.3 billion, and pre-tax profit excluding notable items grew by 10% year-over-year. The bank's financials were impacted by a $5.2 billion foreign currency translation loss related to its Argentina business disposal.
Q4 2024 revenue declined by 8% to $11.6 billion.
Pre-tax profit excluding notable items rose 10% year-over-year to $7.3 billion.
Net income for the quarter stood at $197 million.
HSBC announced a fourth interim dividend of $0.36 per share.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
HSBC expects mid-teens return on equity from 2025 to 2027 and aims for a 3% reduction in operating costs in 2025 while targeting stable revenue growth.
Positive Outlook
- Targeting mid-teens return on equity from 2025-2027.
- Banking net interest income expected to remain around $42 billion in 2025.
- Cost reductions of approximately $300 million expected in 2025.
- Continued focus on capital returns, including buybacks and dividends.
- Expansion in wealth management and international banking segments.
Challenges Ahead
- Global economic uncertainty may impact revenue growth.
- Cost pressures from inflation and regulatory requirements remain high.
- Potential continued credit impairments in commercial real estate.
- Geopolitical risks affecting operations in key markets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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